JPMorgan's Polymarket Debanking Leaves IPO Uncertainty
JPMorgan severed its banking ties with Polymarket in October last year due to regulatory concerns over unregistered trading. Despite this, Polymarket retains operational links with JPMorgan, which may underwrite its initial public offering (IPO). The U.S. Department of Justice is currently probing major banks, including JPMorgan, for improperly closing customer accounts.
Polymarket's services were allowed in the US, but it couldn't offer event markets to US citizens after a Commodity Futures Trading Commission (CFTC) enforcement action. However, Polymarket stressed that it continues to have links with JPMorgan 'across multiple entities, operational integrations and material handling of customer fund flows.' This contradicts initial reports of the bank cutting all ties.
The de-banking practices have become a major issue during the Trump Administration, with President Trump accusing JPMorgan of debanking him after the January 6 incident. He is seeking at least $5 billion in damages.